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Makomo Resources back on its feet

by Staff reporter
25 Aug 2023 at 06:27hrs | Views
HWANGE-based coal miner, Makomo Resources, has resumed operations after securing a contractor.

Makomo, once the country's largest coal miner, went under corporate rescue, a form of bankruptcy protection after running into financial and operational challenges.

The company resumed operations recently and is supplying Zimbabwe Power Company with coal as it angles back into being a major producer and contributing the US$12 billion mining industry.

In an interview yesterday, Makomo Resources director, Mr Raymond Mutokonyi, said their production model was demand-based.

"We resumed operations a month back after we managed to re-organise ourselves and got a contractor," said Mr Mutokonyi.

At some point Makomo Resources was negotiating with potential investors that sought to acquire a significant stake in the coal mining firm.

He said the mine is resuming from where it left and workers that are still available will be considered back.

"The mine is continuing and whoever is available is back, and if we need more staff, we will ask them to come back. We are demand-based and we have capacity as we are powering the nation through supplying coal to Zesa and the private industry," said Mr Mutokonyi.

While focused on serving the market, he said the company was also keen to widen supplies to foreign clients.

Makomo Resources' ongoing corporate rescue plan has been going on well, which has resulted in the miner coming back to life, said the company.

Makomo Resources entered into a two-year mining contract with an unnamed contractor with plans to produce approximately 100 000 tonnes per month.

In a recent statement, the company's lead corporate rescue practitioner Mr Bulisa Mbano said the ongoing corporate rescue proceedings had managed to register significant progress to ensure sustainability of the business operations into the future.

He said key result areas include paying off creditors, increasing production levels, securing tenders among other plans.

Makomo is one of the leading companies contracted by ZPC to supply Unit 7 and 8 with coal for production of electricity in the country. At some point, the company had plans to build a 600-megawatt power station in Hwange.

Operating south-east of Hwange town, Makomo was established more than a decade ago and immediately grew to be a leading producer of coal alongside Hwange Colliery Company.

The company also employs a significant number of locals and has contributed immensely to community development through various corporate social responsibility programmes including water provision, building of schools and supporting the vulnerable members of society with daily needs.

Source - The Chronicle
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